Homeowners Insurance in McKinney:

The Effects of COVID and Omicron!


Last Updated: February 1, 2022

Homeowners insurance in McKinney and COVID is two topics that have been talked about a lot. COVID is an acronym for Coronavirus, which has increased the price of homeowners insurance across the country. The virus has also pushed up prices for auto insurance, but COVID is affecting homeowners more than anything else. How can you reduce the cost of your house insurance during this time? What if you’re unable to make your payments because of COVID? These are all critical questions to consider when deciding how much money you want to spend on your home!

How COVID affects Homeowners Insurance in McKinney?

COVID has caused a lot of people to lose their jobs. The unemployment rate is at an all-time high, and it’s only going to get worse. When you’re unable to work, you’re also unable to pay your bills, including your house insurance payments. If you’re one of the many people who have lost their job because of COVID, you may be wondering what to do about your insurance.

The good news is that most homeowners insurance companies are willing to work with their customers during difficult times. Many of them will allow you to make smaller payments or even postpone your charges altogether. They understand that people are going through a tough time right now, and they want to do whatever they can to help.

If you cannot make your regular payment, call your insurance company and let them know. They will work with you and develop a plan that fits your needs. Remember, it’s essential to keep communication open during this time! The last thing you want is your insurance payment to be late and affect your future rates.

 

How COVID has Pushed the Cost of Homeowners Insurance in McKinney Higher!

Many insurance companies are raising their rates on homeowners because of the high cost of insuring a home during COVID season. Before, you would pay $500 – $700 for home owner’s insurance on average, but now it will cost around $1000 – $1200 on average. Other insurance companies have revised their rates, and they will cost more than ever before!

The main reason COVID is causing insurance rates to go up is the high number of claims. When something like this happens, it’s not just one company that suffers but the entire insurance industry.

Do you know how many claims the insurance company receives during a time of COVID? A whole lot! Many homeowners will file more than one claim, and they’ll do it all at once, which is extremely expensive for companies across the country. Even if someone has multiple policies, such as auto and homeowner’s insurance, they will still file a claim.

COVID is a serious thing, so it’s essential to take action now to save money for the future. If you’re looking at COVID as an opportunity to raise your home owner’s insurance policy, you’re going to be disappointed. Insurance companies are unwilling to raise their rates because of the current market, and they definitely will not do so when the virus is over.

How can I Reduce the Cost of my Homeowners Insurance in McKinney during the Coronavirus?

There are a few things that you can do to reduce the cost of your homeowner’s insurance policy.

Shop Around and Compare Rates:

Just because one company is raising their rates doesn’t mean that all of them will! Many companies are still willing to work with their customers even during difficult times. Compare rates between companies and find the best deal for you. Furthermore, if you are looking towards saving money on renters insurance then go through the blog about cheap renters insurance in Arlington.

Increase your Deductible:

This is a great way to lower your monthly payments without having to sacrifice coverage. If you’re comfortable taking on more risk, increase your deductible amount and save yourself some money each month.

Look into Bundling Policies:

If you have multiple policies with the same company, such as homeowner’s and auto insurance, you should look into bundling them. This usually gives customers a discount on their rates because they take advantage of more than one policy with the same company.

Remove any Coverage that isn’t Necessary:

If you have a lot of coverage on your policy, such as an earthquake or flood insurance, look into removing it. These policies are much more expensive, and they do not help when COVID is in effect.

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What if the Coronavirus Prevents me from Making My Payment for Homeowners Insurance in McKinney?

The National Association of Insurance Commissioners (NAIC) has issued guidelines for states to deal with the situation consistently. Each state handles the situation differently, but most are flexible in payment deadlines, though it’s unclear whether these will stay for a long time.

This may seem like an unlikely situation, but there are options if COVID prevents you from making your payment on time and which the insurance companies do not cover (such as a lost job or injury).

Contact the lender: Contact them immediately if COVID prevents you from paying back your loan in full. Let them know what has happened and work with them to plan for the future.

Contact a HUD counselor: If you have already been late on your payment, contact a HUD-approved housing counselor immediately! They will work with you and your lender to create a repayment plan that works best for everyone involved. It’s essential to communicate during this time because it can make all the difference.

How does Omicron Contribute to the Financial Struggles of Homeowners Insurance in McKinney?

Covid is showing no signs of slowing down. Instead, it creates new versions of itself, like the Omicron.

Even though the employment level has been gradually increasing since the US left its first lockdown in 2021, the country faces a labor shortage.

In the end, home insurance customers face a shortage of skilled labor and rising material costs. Home insurance is not based on a home’s market value but instead on the cost of reconstruction. This means that not only are premiums rising ($1,400 on average per year), but several homeowners may be unaware that they are underinsured.

Your home insurance policy’s “dwelling” coverage limit is the highest amount your insurer will pay to rebuild your home. Guess who has to make up the difference if your dwelling coverage limit doesn’t reflect current labor and material costs—and you have a calamity like a house fire—when insurance isn’t enough? That’s accurate, and the homeowner bears the brunt of the responsibility.

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Homeowners Insurance in McKinney that you should think about adding during the Pandemic?

Sewer backup coverage: The increase in sewage blockages was one of the most unexpected results of the COVID-19 outbreak. People turned to flush items that had no business due to the initial shortage of toilet tissue and the challenge for many to find it. Furthermore, adding this coverage may still be a good option, as standard home insurance policies rarely cover this type of damage.

Home business endorsement: Given the number of people who have found themselves working from home, it may be worthwhile to consider adding a home business endorsement. Adding this coverage can also help you secure your technology, clients, or employee records and defend your company against any legal action.

Frequently Asked Questions 

Q. Will it take longer for auto and home claims to get processed?

Possibly. Many insurance claims entail one-on-one interactions, which may be limited or disrupted during the pandemic.

Q. Are auto and home insurers offering policyholders any financial relief?

During the early phases of the pandemic, many people did. Major motor insurers offered partial refunds on premiums to clients in the spring and summer of 2020, when most Americans hunkered down and avoided the highways.

Q. Do I need to tell my home insurance if I work from home?

Yes, in a nutshell… You’ll need to tell your insurance about your current employment situation. If your employment status changes throughout the course of your policy, notify your insurer immediately, as failing to do so could result in your policy being voided.

 

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James Lewis 

+17708747467 

 Mableton GA 30126 

 

Business Hours 

Monday: 9AM–6PM 

Tuesday: 9AM–6PM 

Wednesday: 9AM–6PM 

Thursday: 9AM–6PM 

Friday: 9AM–6PM